My mother-in-law is a nurse at an S.D. hospital. Way back in late 2005, several of the nurses she works had booked flights to fly to Texas to invest in residential real estate.
Yep. HAD to put money in real estate, but didn’t have enough to invest locally.
So, you have eager money, clueless about the markets they are investing in, throwing cash at whatever they can afford to buy.
If that isn’t one of the signatures of a bubble, I don’t know what is.
And, while it isn’t quite as easy as printing new stock shares, building new homes in Texas is extremely easy.
What happens to the Texas markets when the California money stops flying in to the state? What happens to the Texas market when construction slows nationally and globally, allowing the cost of labor and materials to drop and reduces the cost of construtcting a new home by 15-20%?
